Shell rebrand fails to excite experts

Mike Bennetts said there had been a strong push to change the name. Photo / Sarah Ivey

Brand experts have given end of the alphabet grades to Z - the service station chain replacing Shell.

One said it was a logo more suited to a chocolate bar while another described it as kindergarten level design.

Z (pronounced Zed) stations will be rolled out throughout the 226-site Shell chain following a nationwide trial starting next month.

The New Zealand owners of Shell stations want to give them a more distinctive look as the range of food and coffee and forecourt service is improved.

Wellington-based infrastructure investor Infratil through Greenstone Energy and the New Zealand Superannuation Fund bought Shell stations and other assets for nearly $700 million last April.

The new look was developed by Greenstone staff over several months, refined by marketing experts and put before focus groups at a cost of almost $500,000.

A senior marketing lecturer at Auckland University's business school, Dr Mike Lee, said it was a gamble to drop the century-old Shell logo in favour of one that would suit a chocolate bar.

"I'm not a huge fan of it. The old Shell logo was a classic. The Z doesn't really mean anything and you could put that logo on a chocolate bar - it's neither here nor there."

Z's chief executive, Mike Bennetts, said 17,000 people were surveyed about the business over the past year and there had been a strong push to change the name.

"It's not a punt, it's a well-informed decision."

It also made financial sense as Greenstone had to pay about $7 million a year to use the Shell brand.

Mr Bennetts said Z linked to the z in New Zealand and the company planned to use "It's better to help fill up the NZ retirement fund when you fill up your tank" in marketing.

Better food including New Zealand-made pies and cupcakes and better coffee will be introduced in the high-margin, non-petrol side of the business. Z will also hire up to 200 new employees to provide forecourt service during the day.

James Bickford, managing director of Interbrand, said they were throwing away 100 years of heritage.

"I wouldn't call it a brand, I would call it an ABC kindergarten logo."

The Z livery did not sell an easy-to-grasp message, Mr Bickford said.

"This is a logo that's put on a building with rather dreary yellowy-brown colours and trying to impress [upon] New Zealanders this is a New Zealand brand. It's turned itself from a global brand with a huge heritage into an independent petrol station."

While it was "cupcake cute" he was unsure whether anyone would drive the extra distance to Z.

Julian Smith, a director at branding firm Brian R Richards said it was a "bold move" that could work.

"It's about how they're going to localise it. That will be the test of whether it really connects with the local consumer."